The Big Shift: How to survive and thrive in the new Experience Economy
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the mywave vision | www.mywave.me
The MyWave Vision
The Big Shift: How to survive and
thrive in the new Experience Economy
More than 40 percent of today’s Fortune 500 companies will no
longer exist a decade from now, writes MyWave founder and CEO
Geraldine McBride. Four major ‘inflection points’ – the explosion
in mobile devices, the radical change in the buying patterns and
expectations of millennials, the ‘new normal’ of a post Global
Financial Crisis world economy, and the rise of the ‘Experience
Economy’ – are propelling a major shift in the way enterprises
interact with customers – and vice versa. This White Paper looks
at the drivers of Digital change and places MyWave’s technology
in context for both enterprises and end users.
THE BIG SHIFT
The enterprise company topple-rate is increasing.
Half a century ago, the average Fortune 500
company could expect to survive 75 years,
today that has reduced to 14 years and declining.
Further, it is forecast that more than 40% of
today’s Fortune 500 companies will no longer exist
a decade from now.
Most CEO’s and Boards of major companies I speak with in USA, Europe and Asia Pacific all
tell me, they can’t keep doing in the next four years what they were doing in the last four
years. Their businesses are facing major inflection points.
What is causing this big shift? In the global enterprise field I am working in, I am seeing
5 major factors driving this change:
1. There has been a global consumer revolution through the proliferation of mobile and
tablet consumer devices. There is more power in the hands of the consumer or customer
than at any time in the history of the planet. Customers know more about what they
want and need than the average enterprise brand employee trying to serve them.
2. There is a major generational shift – the millennial generation (those born post 1986)
are social digital natives. They are more different to any prior generation in expectations
and behavior and enterprises generally have a hard time reaching them. They don’t just
want to own “stuff”, they are looking for social, authentic and real experiences.
3. The global economy post the GFC of 2009 is in a ‘new normal’ its not going to
get better anytime soon. The old commoditized or transactional way of relating to
consumers or customers is no longer enough. Companies thriving in this new normal
©MyWave, 2014
the mywave vision | www.mywave.me
have figured out how to create differentiating experiences that people will pay a
premium for, to delight the segment of one (the individual, the one who pays you
money) and entice customers to spend again. Test this question for your business,
is it tough today in your business because of the economy or because your business
model has not kept pace with rapid change, maybe losing relevance or being disrupted/
commoditized to a point where price is the only thing that matters?
4. Post the GFC there has been a shift to ‘The Experience Economy’– customer
expectations are changing. We are moving to a post-industrial era where mass
production, or transactions with heaps of undifferentiated “stuff” is no longer good
enough. People are prepared to pay a premium for a great experience. There is huge
value now in knowing ‘Who I am, what I like, what my friends like and where I am’.
Location services matched with preferences has huge value in delighting customers
or consumers. It’s the Experience Economy – Joe Pine has written a great book on this.
Consumers will give permission to know more about ‘me’ in return for valid and useful
experiences, products or services that give me value or delight the Segment of One.
5. Government Regulations – whether you are in the USA, Europe or Asia Pacific,
government regulations are also driving change.
THE INDUSTRIAL REVOLUTION AND PORTER’S VALUE CHAIN
Lets pause for a minute and think about today’s enterprise business processes. They are
based on a 130-year old model from the Industrial Revolution and updated in more recent
times in 1985 by Porter’s Value Chain.
The challenge is that these models are serial and siloed, a typical value chain
is unidirectional and directed ‘at’ the consumer or customer. A push-model.
Typical Porter’s Value Chain
Value chain
Supply chain Demand chain
Purchasing Manufacturing Distribution Marketing Sales Services
In a tough economy there is tremendous waste in this value chain, whether it be Research
& Development, New Product Introduction, Advertising, Promotions etc. Trillions of
dollars are being spent trying to guess what people want based on old fashioned market
segmentation and a serial value chain. Too often companies forget they exist not for
themselves and their processes but for their customers or consumers and view the
relationship as a transaction rather than an experience. Yet they also spend billions of dollars
trying to guess what customers really want in an attempt to increase revenue and margins.
Most company value chains operate as silos. In the Porter’s Value Chain, where is the
customer, the empowered consumer leveraging cloud, mobile and tablet technologies?
©MyWave, 2014
the mywave vision | www.mywave.me
Where is digitization and creating sticky amazing customer experiences that keep your
customers coming back for more? Where is the connection with those Social Digital Natives
– the Millennials who are your next generation of customer?
These deficiencies are part of what is causing the enterprise topple rate of Fortune
500 companies to increase.
NEW TECHNOLOGY ON OLD PRACTICES
Most enterprises realize they need to change. But too often new technology is being
deployed on old business practices and segmentation models – alienating customers rather
than building strong customer relationships. CRM systems were built for B2B more than
13 years ago and being stretched for B2C.
Privacy and trust
is being eroded
Marketing is less entertaining
and more like pervasive spam
People are starting to feel like
New technology they are being spied upon
coming at a cost
The ‘value equation’ is missing
for most consumers
Multiple company data silos are creating
a broken experience for consumers
Old thinking enabled by new technologies is leading Enterprises to move from
interrupt models to surveillance models where customer privacy and trust is being
eroded. Marketing is less entertaining and more like pervasive spam. Customers are
starting to feel like they are being spied upon through cookies, social network big data
inferences and various location and tracking techniques. There is a building customer
backlash where the top browser extensions being downloaded are those that block ads
and thwart tracking and statistics show that 50% of data on social sites is faked. The value
equation is missing for most consumers and multiple company data silos are creating
broken experiences for their customers.
©MyWave, 2014
the mywave vision | www.mywave.me
Relationships
Integrator
Supplier Manufacturer Consumer Distributor
Retailer
THE RELATIONSHIP MODEL – NEW TECHNOLOGY BASED ON NEW THINKING
The best practice trend is moving away from interrupting, spamming and surveilling your
customer to a relationship model built on a Customer Managed Relationship Platform
rather than a Customer Relationship Management Platform. This moves an enterprise
to being a Customer Driven Business where the customer or the consumer is at the
centre – throwing out old segmentation thinking and building individual ‘segment of one’
customer relationships.
Joe Pine describes customer centricity as “The one who pays you money placed at the
center of everything you do.” The word “one” in that quote is a person, not a segment.
This isn’t merely thinking about the customer as some amorphous set, but the company’s
systems and processes need to be built so as to create rich, personalized relationships with
each individual.
This requires a new way of thinking in an enterprise, to:
1. Understand the customer, this is the only way to provide a consistent and valuable
customer experience and allows for the identification of ‘jobs to be done’.
2. Break the data silos moving towards a single view of the customer and what we know
about them.
3. Where your brand can help your customer gain value from their own data so your brand
has a platform for continued growth.
4. Where the customer has shared ownership of that data, the customer should feel like it
is theirs and are getting value from it and over time, shares more about themselves with
your business because there is value in doing so.
5. Where a relationship is built with your customer based around trust and Mutual Value.
©MyWave, 2014the mywave vision | www.mywave.me
A new way of thinking
Customer Gets
Understand Break Data Customer Trust
Value from
the Customer Silos Ownership Mutual Value
Own Data
This is the only Thinking needs When a brand They must feel Customer data
way to provide to be broken out can help their like it is theirs can no longer
a consistent and of corporate data customers get and they are be viewed as
value customer ownership and value from getting value intelligence to
experience move towards their own data from it be collected and
Allows for the aggregating ALL then that brand dissected
identification of of a customer’s has a platform
’jobs to be done’ data for continued
growth
THE MYWAVE VISION FOR ENTERPRISES
Customers or Consumers are looking for better experiences, enterprises serving them
better, knowing what their needs are, what they want, what they like and their preferences.
They are prepared to pay a premium for better and more personalized experiences.
Enterprises are looking for deeper, stickier customer relationships that are more
personalized with mass customization for economies of scale. They really do want to
know what their customers want; they are seeking higher loyalty, lower costs to serve and
more relevance.
MyWave is in business to close the gap by both providing a Customer Managed
Relationship platform and supporting consulting services to enterprises, while at the same
time building and integrating the personal cloud ‘interface’ that individuals need for their
own segment of one relationships with enterprises.
MyWave’s consulting services are critical in helping enterprises re-imagine their customer
experiences to become a customer driven business, combined with technology that
enables this.
MyWave CMR is powered by personal cloud technology where the customer owns
their data through their CMR personal cloud delivered through a brand created mobile
experience. The customer shares their data, preferences and communicates with the
enterprise around what they need and want. MyWave helps enterprises create great sticky
personalized relationships that keep the customer wanting to come back for more. It allows
the enterprise to build trust and mutual value in each exchange.
As discussed, today’s marketing budgets dwarf IT budgets. CMO’s are working with
second‑hand inferred data that customers resent sharing and which is used to drive
advertising and other promotional messaging that annoy customers with little choice
to opt out, rather than truly engaging them.
©MyWave, 2014the mywave vision | www.mywave.me
CUSTOMER
My Services
My Needs
What I Like
What I want
When I want it
My Preferences
MUTUAL
VALUE
ENTERPRISE
Relationships Personalised
Know what customer wants
Lower cost to serve
Higher loyalty
New monetization models
Relevance
CRM is an $18bn industry almost entirely devoted to pitching, tracking and targeting
at prospects rather than engaging with them. Time is now running out for enterprises
dependent on old marketing paradigms. Marketing budgets can be spent far more wisely
and effectively when enterprises have ways to engage customers directly, relevantly and
continuously and to gain truly useful data and insights from the process.
MyWave’s CMR platform leads the way into this new world of permission based customer
relationships – no more stalking, unwanted ads and promotions or inferring. You KNOW
your customers their needs and wants.
It will deliver personalisation of experience
Sales
and content on any device, anywhere.
It will enable direct realtime virtual service Relevant Offers Insight
Services Marketing
to customers improving experience and Crowd Sourcing Experiences
Advocacy, Loyalty Segments of one
reducing the cost to serve.
It will give deep insight into customer Delightful
Mass
needs for recommendations and for Experiences MyWave Personalisation
JTBD CMR
practical segment of one new initiatives, Platform
such as redefining loyalty programmes to R&D Ideation
Custom or
Distribution
reward advocacy and engagement. Experiences
vs. Things
Standard, Fits Me
Purchasing Manufacturing
©MyWave, 2014the mywave vision | www.mywave.me
MYWAVE’S VISION FOR CONSUMERS
MyWave’s consumer vision is for an online world where individuals have control and
ownership of their data and have the power to choose and create segment of one
personal relationships based on Mutual Value.
That means giving people the power to gather, control and use their data in one place;
to see where they have been, what they have been doing and plan for what they want
to do. It means giving individuals new ways to engage – not only with companies and
people, but with the things they own or aspire to, or are interested in. Conversely, it means
giving individuals the power to filter out the products and services and other personal and
business clutter that wastes their time and energy.
My
My Airlines
Bank My
Restaurants
My
Work
My
Food
My
Brands
MyWave My
Pets
My My life
Friends
My
Fitness
My
Money
My
My Family
Passions
My
My Health
Things
MYWAVE PERSONAL CLOUDS MAKE DATA COME ALIVE
The data an individual generates describes who they are and what they do – up to a point.
Typically, that data is held in enterprise company databases. It ages, is incomplete and is
stored and used in ways designed to push products and services. But if individual customer
data could be accurate, up to date, and – most important – be used with the individual’s
personal ownership and permission, then that data can become alive and help individuals
and enterprises build a highly personalised mutual value relationship.
Take for example one category of personal data – physical fitness. Today fitness data
is harvested by many different devices and stored in many different corporate silos.
©MyWave, 2014the mywave vision | www.mywave.me
The MyWave pCloud will look at all your fitness activity and diet data and give a single
combined view on your own dashboard to help you drive the quickest and straightest
route to your goals. You could, through opt in, share that data with your health insurer or
life insurer and gain better premiums and an easier way to update and engage with your
insurer creating a far better customer experience. With your permission, your insurer can use
your data, that you own and maintain to customise other insurance services and products
that suit your changing needs.
You the customer own your data and share it at your discretion with companies with whom
you want to build a mutual value relationship.
Your ‘things’ can also have pClouds
Using MyWave’s CloudBind, companies can also create clouds for their individual products.
For example if you buy a new mountain bike it can be accompanied by its own personal
cloud that you can access and customise to make it personal to you. These clouds would
be unique to each unit and tied to serial numbers. These unique identification codes can
be read by any mobile device. Any data the enterprise wishes to include such as operating
manuals, warranties, URL’s for firmware, product recalls and other updates for live
interactions can be included with the products’ own cloud.
MyWave puts the individual at the controls
MyWave’s Customer Relationship Management platform for enterprises, linked to its
personal cloud applications for individuals, products and enterprises, lay the building blocks
for a whole new world of online participation.
The MyWave vision is of a world where the customer is firmly at the controls, managing
their own data and choosing the products, the organisations, the companies, the people,
and the physical ‘things’ they want in their online life.
©MyWave, 2014You can also read
